Smart Contract is a digital form of traditional contract and is a solution that ensures that all types of interpersonal transactions can be beneficial to all interested parties regardless of trust. Smart Contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.
This technology was invented and introduced by Nick Szabo in 1994.
Smart Contracts’ advantage over the traditional forms of contracts is that they provide simplicity, a speed of execution and real-time update. They are characterized by autonomy and accuracy of self-fulfillment, which means that there is no delay in providing agreed contract terms.
Smart Contracts are another step in the progress that is made in blockchain technology, consisting in the transition from the protocol of financial transactions to a universal tool that will automatically implement contract terms in an automated manner, minimizing the risk of error and manipulation.